Currently: 1,618,878 Listings of Properties for Sale

Brits owning property in France targeted by new Government

Brits owning property in France targeted by new Government

Brits owning property in France targeted by new Government

By: Nick Marr -  Category: France - Added: 2012-07-12
 

New tax rises proposed by French president Francois Hollande are set to impact thousands of Brits with holiday homes in France.  The new French government is keen to tackle the country’s budget deficit and have put forward proposals to tax wealthy property owners.

Keep reading to learn more about people owning property in France could be affected.

New taxes for foreigners owning property in France

The French government has announced it plans to increase taxes on foreign-owned second homes.The Daily Telegraph reports that ‘tax on rental income would rise from 20 per cent to 35.5 per cent, and capital gains tax on property sales would rise from 19 per cent to 34.5 per cent.’

In addition, the increase in tax on rental income will be backdated to 1 January 2012 while the rise in capital gains tax takes effect from the end of July 2012.  This gives homeowners precious little time to sell their homes to avoid the increased tax.

These taxes are in addition to two other taxes which holiday home owners already pay to the French government.  These are the taxe fonciere, which is paid by the house owner and the taxe d'habitation, which is paid by those who live in it.

The French finance ministry said the new rule would raise around £40 million in 2012 and £200 million in 2013.  The law changes will affect about 60,000 rental properties in France whose owners make an average profit of £12,000.

Jean-Claude Cassac, the secretary general of the French estate agency federation, in the Dordogne, home to thousands of British expatriates and holiday home owners, said the new move was a ‘catastrophe’.

He said: "The plummeting pound meant that the English had almost disappeared from the Dordogne house market. With this, it's as if they want to totally kill off the foreign home owner market in France."

Sun, sea and a strong pound
By:  -  Category: Spain - Added: 2014-12-12
Foreign buyers go back to Spain
By:  -  Category: Spain - Added: 2014-12-09
UK Stamp Duty reform could save £200m
By:  -  Category: United Kingdom - Added: 2014-12-08
Great green home energy tips
By:  -  Category: United Kingdom - Added: 2014-12-03
What the 2014 Autumn Statement could mean for you
By:  -  Category: United Kingdom - Added: 2014-12-02
Value of UK property tops £5 trillion
By:  -  Category: United Kingdom - Added: 2014-12-01
Miami property sales surge
By:  -  Category: United States - Added: 2014-11-26
US home sales up for first time since October 2013
By:  -  Category: United States - Added: 2014-11-24
French property tax "no cause for concern"
By:  -  Category: France - Added: 2014-11-21
Home sales edge higher in Canada
By:  -  Category: Canada - Added: 2014-11-19
UK lending caps weigh on seasonal slowdown
By:  -  Category: United Kingdom - Added: 2014-11-17
1 in 5 Brits would pay more for faster broadband
By:  -  Category: United Kingdom - Added: 2014-11-03
Cambridge leads UK house price rise
By:  -  Category: United Kingdom - Added: 2014-10-27
UK property sales cooling down?
By:  -  Category: United Kingdom - Added: 2014-10-03